Automatic revocation statutes are state laws that revoke an ex-spouse’s beneficiary designation after divorce unless the policyholder affirmatively reaffirms that designation. While these statutes appear simple, they generate frequent litigation because they collide with federal law, retroactivity principles, and the policyholder’s actual intent.
Ex-spouses often win these disputes when courts find that federal law preempts state statutes, the statute cannot be applied retroactively, or the policyholder’s beneficiary designation must be honored as written.
Below are significant cases illustrating when automatic revocation statutes fail and ex-spouses recover life insurance proceeds.
Ex-Spouse Wins Despite Automatic Revocation Laws
1. Washington Supreme Court and Retroactive Statutes
Case Overview:
Washington enacted a statute automatically revoking ex-spouses as life insurance beneficiaries after divorce. Litigation arose over whether the statute could apply to policies issued before the law existed.
Legal Issue:
Whether retroactive application impaired contractual rights.
Outcome:
The court allowed retroactive application of the statute as a default rule but clarified that the statute did not override clear beneficiary designations that reflected the policyholder’s intent. In this case, the ex-spouse recovered the proceeds.
Key Principle:
Automatic revocation statutes cannot rewrite clear beneficiary intent.
2. ERISA Preemption in the Second Circuit
Case Overview:
New York law revoked an ex-spouse’s beneficiary designation after divorce. The policy, however, was governed by ERISA.
Legal Issue:
Whether ERISA preempts state automatic revocation statutes.
Outcome:
The court held that ERISA requires payment strictly according to plan documents. The ex-spouse remained the lawful beneficiary and received the proceeds.
Key Principle:
ERISA overrides state divorce revocation laws.
3. FEGLIA Preemption in Alabama
Case Overview:
Alabama’s automatic revocation statute conflicted with a Federal Employees’ Group Life Insurance policy.
Legal Issue:
Whether FEGLIA preempts state beneficiary revocation statutes.
Outcome:
The court ruled that FEGLIA mandates payment to the named beneficiary, regardless of divorce. The ex-spouse prevailed.
Key Principle:
Federal employee life insurance is governed exclusively by federal law.
4. United States Supreme Court and ERISA Beneficiary Control
Case Overview:
Washington attempted to revoke an ex-spouse’s beneficiary status for both life insurance and pension benefits.
Legal Issue:
Whether state law could override ERISA plan documents.
Outcome:
The Supreme Court ruled that ERISA preempts state revocation statutes. The ex-spouse received the life insurance and pension proceeds.
Key Principle:
Plan documents control under ERISA, not divorce statutes.
5. Eleventh Circuit FEGLIA Preemption Case
Case Overview:
Florida law revoked ex-spouse beneficiary designations after divorce. The policy was governed by FEGLIA.
Legal Issue:
State revocation versus federal beneficiary order.
Outcome:
The court ruled federal law controls. The ex-spouse recovered the full policy proceeds.
Key Principle:
State statutes cannot alter FEGLIA beneficiary designations.
6. Supreme Court Invalidates Virginia FEGLIA Workaround
Case Overview:
Virginia attempted to bypass FEGLIA by allowing current spouses or children to sue ex-spouses after payment.
Legal Issue:
Whether post-payment recovery statutes survive federal preemption.
Outcome:
The Supreme Court invalidated the statute. The ex-spouse kept the proceeds.
Key Principle:
States cannot indirectly circumvent FEGLIA.
7. Minnesota Supreme Court Upholds Revocation
Case Overview:
Minnesota applied its automatic revocation statute retroactively.
Legal Issue:
Whether the insured’s failure to redesignate beneficiary preserved ex-spouse rights.
Outcome:
The estate received the proceeds. The ex-spouse lost.
Key Principle:
State revocation statutes can defeat ex-spouse claims in non-federal policies.
8. Ohio Supreme Court and Waiver Analysis
Case Overview:
Ohio’s statute revoked ex-spouse beneficiary rights, but the insured never updated the policy.
Legal Issue:
Whether inaction constituted reaffirmation.
Outcome:
The estate received the proceeds.
Key Principle:
Silence does not always equal intent to keep an ex-spouse as beneficiary.
9. Tenth Circuit ERISA Preemption Case
Case Overview:
Colorado law revoked ex-spouse beneficiaries after divorce. The policy was governed by ERISA.
Legal Issue:
State revocation versus federal plan control.
Outcome:
The ex-spouse recovered the proceeds.
Key Principle:
ERISA preemption is decisive.
Why Ex-Spouses Often Win These Disputes
Automatic revocation statutes frequently fail because:
• Federal law preempts state law
• Policy documents control under ERISA
• FEGLIA mandates strict beneficiary order
• Retroactive statutes cannot rewrite intent
• Courts disfavor implied revocation
Insurers often misapply state statutes without analyzing federal preemption.
How Life Insurance Lawyers Handle Ex-Spouse Revocation Disputes
Effective representation involves:
• Identifying ERISA or FEGLIA governance
• Analyzing retroactivity and intent
• Challenging improper statute application
• Litigating federal preemption issues
• Protecting named beneficiaries from wrongful denial
Many ex-spouse denials are reversed once the correct legal framework is applied.
Frequently Asked Questions
What is an automatic revocation statute
A state law that revokes an ex-spouse as beneficiary after divorce unless reaffirmed.
Do these statutes apply to all policies
No. ERISA and FEGLIA policies are exempt due to federal preemption.
Does divorce automatically remove an ex-spouse as beneficiary
Not always. Federal law often requires payment to the named beneficiary.
Can insurers deny claims based solely on divorce
Only if the policy is governed by state law and the statute applies.
Should an ex-spouse denial be reviewed by a lawyer
Yes. These cases turn on technical federal and state law conflicts.